Are Investors Undervaluing Siderurgica Nacional (SID) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Siderurgica Nacional (SID). SID is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 9.26, while its industry has an average P/E of 16.72. SID's Forward P/E has been as high as 5,422.78 and as low as -1,879.76, with a median of 5.92, all within the past year.
Finally, we should also recognize that SID has a P/CF ratio of 26.86. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 70.40. Over the past 52 weeks, SID's P/CF has been as high as 28.84 and as low as 1.68, with a median of 4.07.
These are only a few of the key metrics included in Siderurgica Nacional's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SID looks like an impressive value stock at the moment.
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